[billozz]

not sure if anyone can help but we are thinking of taking on someone else to help and we are trying to decide whether to employ or keep as self employed, does anyone have experience of both ways of doing it, if so what are the advantages or disadvantages. also if self employed how do you calculate their costs against what they are earning, should we pay them holiday pay or not. i am aware that technically you cannot class someone as self employed if they work for you permenanatly but i also know that this still happens.
all help or suggestions gratefully received
thanks
Bill

[Skyglide]

Wouldn't go there personally. Dangerous game today. Do you really want to risk having to pay all their taxes?
Employ the right staff(if you can get them!) or do it yourself and sleep at night.

[billozz]

Wouldn't go there personally. Dangerous game today. Do you really want to risk having to pay all their taxes?
Employ the right staff(if you can get them!) or do it yourself and sleep at night.

sorry i am not sure what you mean, do you mean that you would rather have employed than self employed, self employed pay their own tax. is it not an awful lot of hassle employing people, i mean from a bookkeeping and tax point of view, this is why we thought if they were self employed it would just be a case of paying them and getting an invoice, bobs your uncle.
thanks for the answer though its the only one so far
Bill

[dave0123]

Its not worth having them self employed.


if you get caught my the tax man you will be made to pay all there taxes from when they started working for you say that was 2 years?? they would want 2years tax and a fine most proberly.

why not just pay them employed ok you have to pay there tax and NI but thats taken out of there wages and then theres your NI for that employee  but its only every three months.

[LWC]

but why cant you take them self employed?

[ronnie paton]

why can contract management companys sub work out then???
mine make me sign  a disclosure form to say i know it my responsibilty to pay my own tax!!

i know of a national company that is quite new that subs most of its work out has its based in the north west!!

it must be posible to sub out!!

[LWC]

yes it is! i dont know why you all say you cant, i get subbed loads of work and its my responsibilty to sort it out!!

i remember when i was younger doing a bit of betterware in my spare time, and you had to sort out your own tax then. so why not this?

[Xline Systems]

you say when you were younger lwc. how old are hou it says your 23 on your profile

[LWC]

i am 23 lol!

when i was 18, so...when i was younger

[jewelcleaning]

but why cant you take them self employed?

Spoke about this with Inland Revenue in some depth, found it wasn't worth having someone as self employed if you pay them.  The IR want to make sure the person you are supplying work to is well looked after, ie sick pay, and all the other benefits of being employed.

They said if there is 'mutual dependancy' i.e. you rely on each other, you should be employing them.

However if the customer is paying each person directly, then each is effectively a sole trader.  You are not responsible for actually paying the person working with you.

Example, you clean a house that is £30.00, you ask the customer to write a cheque for £20.00 for you, and a cheque for £10.00 to the other person.  You call the shots, but each gets paid individually.

It's definately worth getting an accountant to sort all of these issues out.  The amount they will save you on your tax bill will easily make up for their bill!